Ecuador: Leading the pack on tobacco taxation

A recent tax increase on tobacco products has made Ecuador the leading Latin American country in terms of tobacco taxation. In November 2011, Ecuador levied an additional US$0.08 tax on each individual cigarette sold, increasing the cost per pack around 20%. "This is a real milestone for the Region of the Americas and the world," said Rocio Vaca Bucheli, Executive Director of the Ecuadorian Foundation for Respiratory Health. "The new tax meets some of the most advanced recommendations in tobacco fiscal policy: it is adjustable every six months according to the consumer price index, which maintains the value against the final price, and other prices in the economy." The tax share of tobacco is now 77.4%, compared to 64% in 2010. Framework Convention Alliance.
http://bit.ly/t4KRSE

Date Posted: 13 December 2011